Here’s a fact that blew my mind: In India, you’re not legally allowed to run a for-profit school. Which means every single school you see, even the ones charging ₹5–10 lakhs a year is technically “not-for-profit.” Here is how it works👇 On paper, schools must be set up as charitable entities. The idea behind this law was simple: if schools were forced to be “not-for-profit,” they’d keep fees reasonable and affordable education would be available to all. Of course, that’s just the theory. In reality, people have found genius loopholes to make money anyway: 1. The Rent & Services Racket The school itself is a “non-profit trust,” but the land, building, buses, canteen are run by separate companies owned by the promoters. The trust then pays these companies inflated rents and service fees. 2. Franchise & brand fees International schools often pay hefty “management” or “brand” fees to an overseas board or a promoter-owned entity. A clean route to siphon off money while keeping “nonprofit” status intact. So on paper: charity. In practice: one of India’s most profitable “non-profits.” What’s the wildest "not-for-profit" school fee you’ve run into? Drop it in the comments 👇
Same for hospitals
I personally know a few schools like Manchester and Yellowtrain in Coimbatore where they charge 3-4 Lakhs for the 1st grade, this is in a tier 2 city. Also one trend that I have been noticing lately is that things we used to do in our school days like sweeping the classroom, playing with cattle, huts for classrooms are now marketed as premium experience in this time of concrete jungles and a hefty amount is charged for these.
very insightful, another clever one I’ve seen: schools renting out their auditoriums and sports facilities after hours
India’s compliance frameworks often prioritise intent over enforceability. And wherever there’s intent without audit, arbitrage follows. What we’re seeing in education is no different from what’s played out in healthcare, CSR, and even FDI structures. The model isn't broken. It’s just being gamified better than it’s being governed.
and they dont even pay taxes on all the money they make
India has a public goods attitude towards education
There are schools charging 20 lakh plus and still can’t afford decent chairs in the classrooms. That’s the biggest irony 😆
If you remember, there was one group that made education less difficult by: >> making public education free, more accessible. >> curbing any increase in private school fees in their tenure of 11 years. Now that political groups' thoughts are copied across the country by other political parties. Probably time to rekindle their thoughts, and give them more power. Maharishi R B You possibly know who gave India free, compulsory education with better outreach to primary schools across their state. The one who always speak constructively about basic education and healthcare.
It's an unsaid truth. Schools/colleges are money L washing machines
Founder @ Beyond Financial Score (BeFiSc) | Bootstrapped from 0 to $3M ARR | Fighting fraud, one API at a time 🚀 |
6dI think the simplest fix is to just let them make profits legally.